On July 31, 2024, Massachusetts Governor Maura Healey signed into law the Frances Perkins Workplace Equity Act, a significant measure aimed at promoting pay transparency and addressing gender and racial wage disparities. This legislation is a key expansion of the Massachusetts Equal Pay Act, enacted in July 2018, and it positions Massachusetts alongside other states like Colorado, Maryland, Connecticut, Nevada, Rhode Island, Washington, California, and New York. which have also adopted similar measures to combat wage gaps.

Pay Transparency

Effective July 31, 2025, employers in Massachusetts with 25 or more employees must disclose pay ranges in job postings. This mandate extends to promotions and transfers, where employers must provide pay range information for positions with different responsibilities. In addition, employees and job applicants can request pay range information for specific positions.

The law defines a "pay range" as the annual salary range or hourly wage range an employer reasonably expects to pay for a position. Notably, the Act does not require disclosure of additional compensation, such as bonuses or benefits. The term "posting" encompasses advertisements or job postings intended to recruit applicants, including those by third parties.

Reporting Requirements

A distinguishing feature of this law is its pay data reporting requirement. Starting February 1, 2025, the Act requires employers with at least 100 Massachusetts-based employees to file an annual report with the Commonwealth. This report must include demographic and pay data by race, ethnicity, sex, and job category. Unions, state and local governments, and school systems must submit these reports every other year. Private employers can submit their annual federal Equal Employment Opportunity Commission (EEO-1) Report to meet the state reporting requirement. The Massachusetts Department of Labor will publish anonymized aggregated data online, offering insights into wage disparities across industries without revealing specific employer details.

Anti-Retaliation and Enforcement

The Act includes robust anti-retaliation provisions, prohibiting employers from discriminating against employees or applicants who exercise their rights under the law. This protection extends to those who file complaints, initiate proceedings, or testify regarding violations.

The Massachusetts Attorney General's Office holds exclusive jurisdiction for enforcement. Penalties for non-compliance range from a warning for a first offense to fines up to $25,000 for subsequent offenses. Employers have a 48-hour window to correct violations before they are considered separate offenses, allowing some flexibility for compliance.

Implications for Employers

Employers in Massachusetts should prepare for the law's implementation by evaluating their current pay structures and ensuring compliance with the new requirements. This involves updating job postings to include pay ranges and developing procedures for providing pay range information upon request. Additionally, organizations with 100 or more employees in the Commonwealth should begin preparing for the wage data reporting obligations.

Governor Maura Healey emphasized the law's significance, stating, "This new law is an important next step toward closing wage gaps, especially for People of Color and women. It will also strengthen the ability of Massachusetts employers to build diverse, talented teams." This legislation underscores Massachusetts' commitment to fostering equity and transparency in the workplace and enhancing its competitiveness in attracting diverse talent.

Parting Thoughts

The Frances Perkins Workplace Equity Act is designed to enhance pay transparency and address wage disparities in Massachusetts. By requiring employers to disclose pay ranges and report demographic and pay data, the law aims to reduce wage gaps and promote fair compensation. As the law takes effect in 2025, employers must comply with these requirements to ensure transparency and equity in the workplace.

Release Date: September3, 2024